UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21583
Clough Global Allocation Fund
(exact name of registrant as specified in charter)
1290 Broadway, Suite 1100, Denver, Colorado 80203
(Address of principal executive offices) (Zip code)
Abigail J. Murray, Secretary
Clough Global Allocation Fund
1290 Broadway, Suite 1100
Denver, Colorado 80203
(Name and address of agent for service)
Registrants telephone number, including area code: 303-623-2577
Date of fiscal year end: October 31
Date of reporting period: November 1, 2014 October 31, 2015
Item 1. Reports to Stockholders.
S ECTION 19(B) D ISCLOSURE
|
October 31, 2015 (Unaudited)
Clough Global Allocation Fund, Clough Global Equity Fund, and Clough Global Opportunities Fund (each a Fund and collectively, the Funds), acting pursuant to a Securities and Exchange Commission (SEC) exemptive order and with the approval of each Funds Board of Trustees (the Board), have adopted a plan, consistent with each Funds investment objectives and policies to support a level distribution of income, capital gains and/or return of capital (the Plan). In accordance with the Plan, Clough Global Allocation Fund distributes $0.120 per share on a monthly basis, Clough Global Equity Fund distributes $0.115 per share on a monthly basis and Clough Global Opportunities Fund distributes $0.100 per share on a monthly basis.
The fixed amount distributed per share is subject to change at the discretion of each Funds Board. Under the Plan, each Fund will distribute all available investment income to its shareholders, consistent with each Funds primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the Code). If sufficient investment income is not available on a monthly basis, each Fund will distribute long-term capital gains and/or return of capital to shareholders in order to maintain a level distribution. Each monthly distribution to shareholders is expected to be at the fixed amount established by the Board, except for extraordinary distributions and potential distribution rate increases or decreases to enable each Fund to comply with the distribution requirements imposed by the Code.
Shareholders should not draw any conclusions about each Funds investment performance from the amount of these distributions or from the terms of the Plan. Each Funds total return performance on net asset value is presented in its financial highlights table.
The Board may amend, suspend or terminate each Funds Plan without prior notice if it deems such action to be in the best interest of either the Fund or its shareholders. The suspension or termination of the Plan could have the effect of creating a trading discount (if a Funds stock is trading at or above net asset value) or widening an existing trading discount. Each Fund is subject to risks that could have an adverse impact on its ability to maintain level distributions. Examples of potential risks include, but are not limited to, economic downturns impacting the markets, increased market volatility, companies suspending or decreasing corporate dividend distributions and changes in the Code. Please refer to each Funds prospectus for a more complete description of its risks.
Please refer to Additional Information for a cumulative summary of the Section 19(a) notices for each Funds current fiscal period. Section 19(a) notices for each Fund, as applicable, are available on the Clough Global Closed-End Funds website www.cloughglobal.com.
Clough Global Funds | Table of Contents |
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Clough Global Funds | Shareholder Letter | |
October 31, 2015 (Unaudited) |
To Our Investors:
Clough Global Allocation Fund (GLV)
During the twelve months ended October 31, 2015, the Clough Global Allocation Funds total return, assuming reinvestment of all distributions, was 1.61% based on the net asset value and 2.57% based on the market price of the Fund. The S&P 500 and the MSCI World Index returned 5.20% and 2.43% respectively over the same period. During the twelve months ended October 31, 2015, the Fund paid $1.41 per share in distributions. As of October 31st, the Fund had an annualized dividend distribution rate on the market price of 10.37%.
Clough Global Equity Fund (GLQ)
During the twelve months ended October 31, 2015, the Clough Global Equity Funds total return, assuming reinvestment of all distributions, was 0.76% based on the net asset value and -0.98% based on the market price of the Fund. The S&P 500 and the MSCI World Index returned 5.20% and 2.43% respectively over the same period. During the twelve months ended October 31, 2015, the Fund paid $1.36 per share in distributions. As of October 31st, the Fund had an annualized dividend distribution rate on the market price of 10.53%.
Clough Global Opportunities Fund (GLO)
During the twelve months ended October 31, 2015, the Clough Global Opportunities Funds total return, assuming reinvestment of all distributions, was 1.13% based on the net asset value and 1.93% based on the market price of the Fund. The S&P 500 and the MSCI World Index returned 5.20% and 2.43% respectively over the same period. During the twelve months ended October 31, 2015, the Fund paid $1.19 per share in distributions. As of October 31st, the Fund had an annualized dividend distribution rate on the market price of 10.58%.
For the year ending October 31, 2015, the Global Allocation Fund finished up 1.61%, the Global Equity Fund finished up 0.76%, and the Global Opportunities Fund finished up 1.13%.
The Consumer Discretionary sector was the largest contributor to performance. Homebuilders such as DR Horton, jewelry retailer Signet, and theater operator IMAX were top contributors within the consumer sector. The Information Technology sector was also a significant help to performance including names like Salesforce.com and Facebook.
Our investments in some homebuilders have been profitable, but nowhere near the extent had we thought likely at this point in the cycle. They were up modestly in a strong tape this month. Disappointing pending home sales were reported for September, but that was due to supply shortages. Fundamentals at some companies in the field are strong, with major firms reporting double digit order
and backlog growth, and we still think pent up demand is likely to cause a breakout in single family housing activity in 2016 and 2017.
Detractors to performance were in the Energy and Financial sectors. Two holdings on the long side in Lumber Liquidators and Calpine also hurt performance. The Funds no longer hold the former but are sticking with the latter as we believe the fundamentals and cash flow generation are strong.
The short book was strong in the first half of 2015 as positions designed to benefit from a strong dollar and collapsing commodities markets outperformed. These positions became a drag in the last quarter when a sharp snap back rally in energy equipment suppliers and industrial commodity producers took back earlier profits. We believe these rallies wont last. For one, the renewed raise in the dollars foreign exchange value only aggravates the deflationary world in which commodity producers exist. Industrial and precious metal prices have already reversed in a weak rally and many have declined to new lows. Profits for many of these companies are in secular decline.
Free cash flow is becoming a powerful stock selection tool on both the long and short sides. There are companies that generate excess free cash flow after funding dividends and capital spending requirements and there are those that do not. Those that do we call compounders companies which can grow shareholder value year in and year out. We have seen any number of instances where companies facing fundamental decline have aggravated the destruction of shareholder value by leveraging to purchase shares at prices higher than what their stock sells for today. Many of the former, companies generating sufficient free cash flow to fund necessary capex and add to cash holdings, performed well. Interestingly, free cash flow is negative for the corporate sector as a whole so far in 2015, and companies which are taking on debt to support buybacks and dividends are typically moving onto our short/hedge list. The more the leveraged loan market comes under stress, the greater the short side opportunity becomes.
The comparable to free cash flow in the financial sector is excess capital and one holding in which we see that accreting is Citigroup Inc. The company is in a unique position of building excess capital while being able to buy back stock at a discount to its tangible book value. It also faces a market share opportunity as weaker competitive global banks shrink operations. Such examples include Standard Charter and Credit Suisse, both of whom recently announced capital raises and business restructuring. Deutsche Bank and Unicredit also announced staff and asset reductions.
Broadly speaking, our current short book is focused on industries in which we believe earnings will likely suffer from chronic industry overinvestment. Examples include energy, suppliers to smartphone manufacturers, and excess capacity in the European airline industry.
According to a Simmons & Co. analyst, dividend and capital spending by the major oil companies will exceed cash flow by $90 billion in 2015 even after all announced capital spending cuts. The most
2 |
www.cloughglobal.com |
Clough Global Funds | Shareholder Letter | |
October 31, 2015 (Unaudited) |
vulnerable service companies we see are the deep water drillers. The companies must take delivery of excess rigs ordered during the period of higher oil prices but now face few new contract opportunities.
Finally, we still hold firm in our belief that we are in a low interest rate environment, regardless of the possible upcoming Fed rate hike in December. We are long duration in the form of 30 year US treasuries and will continue to build this position when temporary rise in yields provide an attractive entry point.
If you have any questions about your investment, please call
1-877-256-8445.
Sincerely,
Charles I. Clough, Jr.
Robert M. Zdunczyk
Past performance is no guarantee of future results.
This letter is provided for informational purposes only and is not an offer to purchase or sell shares. Clough Global Allocation Fund, Clough Global Equity Fund and Clough Opportunities Fund are closed-end funds, which are traded on the New York Stock Exchange AMEX, and does not continuously issue shares for sale as open-end mutual funds do. The market price of a closed end Fund is based on the markets value.
The information in this letter represents the opinions of the individual Portfolio Managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Past performance is no guarantee of future results.
Tangible Book Value: Computed by deducting intangible assets, start-up expenses, and deferred financing costs from the firms normal book value (BV).
MSCI World Index: a stock market index of world stocks. It is maintained by MSCI Inc. and is often used as a common benchmark for world or global stock funds. The index includes a collection of stocks of all the developed markets in the world as defined by MSCI.
S&P 500 Index: Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poors 500 ® or S&P 500 ® .
It is not possible to invest directly in an index.
The net asset value (NAV) of a closed-end fund is the market price of the underlying investments (i.e., stocks and bonds) in the funds portfolio, minus liabilities, divided by the total number of fund shares outstanding. However, the fund also has a market price; the value of which it trades on an exchange. This market price can be more or less than its NAV.
Annual Report | October 31, 2015 |
3 |
Clough Global Funds | Shareholder Letter | |
October 31, 2015 (Unaudited) |
4 |
www.cloughglobal.com |
Clough Global Allocation Fund | Portfolio Allocation | |
October 31, 2015 (Unaudited) |
* |
Percentages are based on total investments, including securities sold short. Holdings are subject to change. |
^ |
Includes securities sold short and foreign cash balances. |
|
US Multinational Corporations has more than 50% of revenues derived outside of the U.S. |
Global Securities Holdings ^ | ||
|
||
United States |
84.78% | |
China |
10.49% | |
U.S. Multinationals |
9.70% | |
Japan |
4.22% | |
Canada |
2.58% | |
United Kingdom |
2.24% | |
Hong Kong |
1.24% | |
Denmark |
0.16% | |
Other |
-15.41% | |
|
||
TOTAL INVESTMENTS |
100.00% | |
|
||
|
Annual Report | October 31, 2015 |
5 |
Clough Global Equity Fund | Portfolio Allocation | |
October 31, 2015 (Unaudited) |
* |
Percentages are based on total investments, including securities sold short. Holdings are subject to change. |
^ |
Includes securities sold short and foreign cash balances. |
|
US Multinational Corporations has more than 50% of revenues derived outside of the U.S. |
Global Securities Holdings ^ | ||
|
||
United States |
85.26% | |
China |
11.37% | |
U.S. Multinationals |
9.85% | |
Japan |
4.91% | |
Canada |
3.30% | |
United Kingdom |
2.31% | |
Hong Kong |
1.73% | |
Denmark |
0.16% | |
Other |
-18.89% | |
|
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TOTAL INVESTMENTS |
100.00% | |
|
||
|
6 |
www.cloughglobal.com |
Clough Global Opportunities Fund | Portfolio Allocation | |
October 31, 2015 (Unaudited) |
* |
Percentages are based on total investments, including securities sold short. Holdings are subject to change. |
^ |
Includes securities sold short and foreign cash balances. |
|
US Multinational Corporations has more than 50% of revenues derived outside of the U.S. |
Global Securities Holdings ^ | ||
|
||
United States |
84.23% | |
China |
10.38% | |
U.S. Multinationals |
10.11% | |
Japan |
4.19% | |
Canada |
2.56% | |
United Kingdom |
2.22% | |
Hong Kong |
1.46% | |
Denmark |
0.16% | |
Australia |
-0.05% | |
Other |
-15.26% | |
|
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TOTAL INVESTMENTS |
100.00% | |
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Annual Report | October 31, 2015 |
7 |
Clough Global Allocation Fund | Statement of Investments | |
October 31, 2015 |
Shares | Value | |||||||
|
||||||||
COMMON STOCKS 108.89% |
||||||||
Consumer Discretionary 28.06% |
||||||||
Diversified Consumer Services 3.10% |
||||||||
Service Corp. International (a)(b) |
45,700 | $1,291,482 | ||||||
Starbucks Corp. (a)(b) |
59,900 | 3,747,943 | ||||||
|
|
|||||||
5,039,425 | ||||||||
|
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|||||||
Household Durables 5.59% |
||||||||
DR Horton, Inc. (a) |
146,926 | 4,325,502 | ||||||
Lennar Corp. - Class A (a) |
95,200 | 4,766,664 | ||||||
|
|
|||||||
9,092,166 | ||||||||
|
|
|||||||
Internet & Catalog Retail 6.56% |
||||||||
JD.com, Inc. - ADR (a)(c) |
57,700 | 1,593,674 | ||||||
Liberty Ventures - Series A (a)(b)(c) |
114,072 | 4,970,117 | ||||||
NetFlix, Inc. (a)(c) |
5,100 | 552,738 | ||||||
Priceline Group, Inc. (a)(c) |
1,764 | 2,565,279 | ||||||
Rakuten, Inc. |
70,900 | 991,496 | ||||||
|
|
|||||||
10,673,304 | ||||||||
|
|
|||||||
Media 9.90% |
||||||||
AMC Entertainment Holdings, Inc. - Class A (a) |
63,300 | 1,732,521 | ||||||
Comcast Corp. - Class A (a)(b) |
55,000 | 3,444,100 | ||||||
IMAX Corp. (a)(b)(c) |
69,500 | 2,668,105 | ||||||
Liberty Broadband Corp. -
|
12,528 | 683,528 | ||||||
Liberty Broadband Corp. -
|
47,848 | 2,572,787 | ||||||
Liberty Media Corp. - Class A (a)(b)(c) |
50,112 | 2,042,565 | ||||||
Liberty Media Corp. - Class C (a)(b)(c) |
48,424 | 1,895,799 | ||||||
Lions Gate Entertainment Corp. (a) |
27,400 | 1,067,778 | ||||||
|
|
|||||||
16,107,183 | ||||||||
|
|
|||||||
Specialty Retail 2.06% |
||||||||
Signet Jewelers, Ltd. (a)(b) |
22,150 | 3,343,321 | ||||||
|
|
|||||||
Textiles 0.85% |
||||||||
Carters, Inc. (a) |
11,700 | 1,063,296 | ||||||
Samsonite International S.A. |
106,500 | 315,353 | ||||||
|
|
|||||||
1,378,649 | ||||||||
|
|
|||||||
TOTAL CONSUMER DISCRETIONARY |
45,634,048 | |||||||
|
|
|||||||
Consumer Staples 0.34% |
||||||||
CVS Health Corp. (a) |
5,600 | 553,168 | ||||||
|
|
|||||||
Energy 4.85% |
||||||||
Anadarko Petroleum Corp. (a) |
19,800 | 1,324,224 | ||||||
Concho Resources, Inc. (a)(c) |
12,500 | 1,448,875 |
Shares | Value | |||||||
|
||||||||
Energy (continued) |
||||||||
Devon Energy Corp. (a) |
26,300 | $1,102,759 | ||||||
EOG Resources, Inc. (a) |
11,300 | 970,105 | ||||||
Fairway Energy Partners LLC (c)(d)(e) |
130,700 | 1,323,337 | ||||||
Pioneer Natural Resources Co. (a) |
12,500 | 1,714,250 | ||||||
|
|
|||||||
7,883,550 | ||||||||
|
|
|||||||
Financials 28.75% |
||||||||
Business Development Corporations 1.74% |
||||||||
Ares Capital Corp. (a) |
118,300 | 1,801,709 | ||||||
Golub Capital BDC, Inc. (a) |
63,100 | 1,032,947 | ||||||
|
|
|||||||
2,834,656 | ||||||||
|
|
|||||||
Capital Markets 3.72% |
||||||||
Atlas Mara, Ltd. (c)(e) |
183,658 | 1,101,948 | ||||||
Daiwa Securities Group, Inc. |
48,000 | 330,992 | ||||||
Goldman Sachs Group, Inc. (a)(b) |
9,800 | 1,837,500 | ||||||
Morgan Stanley (a)(b) |
84,487 | 2,785,536 | ||||||
|
|
|||||||
6,055,976 | ||||||||
|
|
|||||||
Commercial Banks 1.48% |
||||||||
First Republic Bank (a) |
14,900 | 973,119 | ||||||
Mitsubishi UFJ Financial Group, Inc. |
86,800 | 568,692 | ||||||
Mizuho Financial Group, Inc. |
271,100 | 562,330 | ||||||
Sumitomo Mitsui Financial Group, Ltd. |
7,600 | 306,091 | ||||||
|
|
|||||||
2,410,232 | ||||||||
|
|
|||||||
Diversified Financials 9.88% |
||||||||
Bank of America Corp. (a)(b) |
393,991 | 6,611,169 | ||||||
Citigroup, Inc. (a)(b) |
155,730 | 8,280,164 | ||||||
JPMorgan Chase & Co. (a) |
18,200 | 1,169,350 | ||||||
|
|
|||||||
16,060,683 | ||||||||
|
|
|||||||
Insurance 3.02% |
||||||||
American International Group, Inc. (a)(b) |
66,700 | 4,206,102 | ||||||
Ping An Insurance Group Co. of China, Ltd. - Class H |
126,000 | 709,609 | ||||||
|
|
|||||||
4,915,711 | ||||||||
|
|
|||||||
Real Estate Investment Trusts 5.14% |
||||||||
Healthcare Trust of America, Inc. - Class A (a) |
51,500 | 1,354,965 | ||||||
Ladder Capital Corp. (a) |
50,204 | 715,909 | ||||||
PennyMac Mortgage Investment
|
106,414 | 1,555,773 | ||||||
Starwood Property Trust, Inc. (a)(b) |
154,400 | 3,101,896 | ||||||
Two Harbors Investment Corp. (a) |
191,791 | 1,622,552 | ||||||
|
|
|||||||
8,351,095 | ||||||||
|
|
8 |
www.cloughglobal.com |
Clough Global Allocation Fund | Statement of Investments | |
October 31, 2015 |
Shares | Value | |||||||
|
||||||||
Financials (continued) |
||||||||
Thrifts & Mortgage Finance 3.77% |
||||||||
MGIC Investment
|
363,734 | $3,419,100 | ||||||
Radian Group, Inc. (a)(b) |
187,500 | 2,713,125 | ||||||
|
|
|||||||
6,132,225 | ||||||||
|
|
|||||||
TOTAL FINANCIALS |
46,760,578 | |||||||
|
|
|||||||
Health Care 13.87% |
||||||||
3SBio, Inc. (c)(e) |
3,500 | 3,969 | ||||||
Acceleron Pharma,
|
14,200 | 443,182 | ||||||
Akorn, Inc. (a)(c) |
40,400 | 1,080,296 | ||||||
Albany Molecular Research,
|
45,500 | 820,820 | ||||||
Allergan PLC (c) |
3,100 | 956,257 | ||||||
AstraZeneca PLC - Sponsored ADR (a) |
15,436 | 492,254 | ||||||
Bristol-Meyers Squibb
|
10,087 | 665,238 | ||||||
Cardiome Pharma
|
139,500 | 1,139,715 | ||||||
Cerner Corp. (a)(b)(c) |
11,600 | 768,964 | ||||||
Cigna Corp. (a) |
10,800 | 1,447,632 | ||||||
Community Health Systems, Inc. (c) |
6,200 | 173,848 | ||||||
Corindus Vascular Robotics, Inc. (a)(c) |
139,800 | 447,360 | ||||||
Dynavax Technologies Corp. (a)(c) |
18,300 | 415,593 | ||||||
Forward Pharma A/S - ADR (a)(c) |
23,700 | 596,292 | ||||||
Gilead Sciences, Inc. |
1,700 | 183,821 | ||||||
GW Pharmaceuticals PLC -
|
17,400 | 1,376,166 | ||||||
HCA Holdings, Inc. (a)(b)(c) |
10,377 | 713,834 | ||||||
Healthways, Inc. (a)(c) |
159,449 | 1,876,715 | ||||||
Hologic, Inc. (a)(b)(c) |
20,000 | 777,200 | ||||||
Intra-Cellular Therapies, Inc. (a)(c) |
25,500 | 1,220,175 | ||||||
Intrexon Corp. (a)(c) |
14,004 | 470,534 | ||||||
Jazz Pharmaceuticals PLC (a)(b)(c) |
4,737 | 650,295 | ||||||
Keryx Biopharmaceuticals, Inc. (a)(c) |
132,900 | 595,392 | ||||||
Perrigo Co. PLC (a) |
4,360 | 687,746 | ||||||
Sinopharm Group Co., Ltd. - Class H |
237,600 | 984,048 | ||||||
Team Health Holdings, Inc. (a)(c) |
6,100 | 363,987 | ||||||
Veracyte, Inc. (a)(b)(c) |
107,956 | 702,794 | ||||||
Vertex Pharmaceuticals, Inc. (a)(b)(c) |
17,200 | 2,145,528 | ||||||
Zeltiq Aesthetics, Inc. (c) |
10,600 | 357,644 | ||||||
|
|
|||||||
22,557,299 | ||||||||
|
|
|||||||
Industrials 12.50% |
||||||||
Air China, Ltd. - Class H |
340,000 | 328,568 | ||||||
Allison Transmission Holdings,
|
81,441 | 2,337,357 | ||||||
Armstrong World Industries, Inc. (a)(b)(c) |
31,100 | 1,543,182 |
Shares | Value | |||||||
|
||||||||
Industrials (continued) |
||||||||
China Railway Construction Corp., Ltd. - Class H |
541,000 | $813,880 | ||||||
Kansas City Southern (a)(b) |
33,300 | 2,755,908 | ||||||
Keisei Electric Railway Co., Ltd. |
73,000 | 906,828 | ||||||
Mitsubishi Heavy Industries, Ltd. |
124,000 | 631,047 | ||||||
Roper Technologies, Inc. (a)(b) |
19,500 | 3,633,825 | ||||||
Seibu Holdings, Inc. |
55,500 | 1,131,893 | ||||||
TransDigm Group, Inc. (a)(c) |
15,400 | 3,385,690 | ||||||
Viasat, Inc. (a)(b)(c) |
37,649 | 2,483,328 | ||||||
Wesco Aircraft Holdings,
|
5,200 | 64,792 | ||||||
Xinjiang Goldwind Science & Technology Co., Ltd. - Class H |
172,400 | 325,199 | ||||||
|
|
|||||||
20,341,497 | ||||||||
|
|
|||||||
Information Technology 10.73% |
||||||||
Alibaba Group Holding, Ltd. - Sponsored ADR (a)(c) |
19,200 | 1,609,536 | ||||||
Alphabet, Inc. - Class A (a)(c) |
2,470 | 1,821,353 | ||||||
Alphabet, Inc. - Class C (a)(c) |
2,337 | 1,661,163 | ||||||
Baidu, Inc. - Sponsored
|
2,200 | 412,434 | ||||||
Facebook, Inc. -
|
34,400 | 3,507,768 | ||||||
Fujifilm Holdings Corp. |
14,100 | 566,945 | ||||||
Lam Research Corp. (a) |
30,200 | 2,313,018 | ||||||
Microsoft Corp. (a) |
17,100 | 900,144 | ||||||
Nintendo Co., Ltd. |
4,200 | 678,014 | ||||||
Pandora Media, Inc. (a)(b)(c) |
75,400 | 867,854 | ||||||
Salesforce.com, Inc. (a)(b)(c) |
40,000 | 3,108,400 | ||||||
|
|
|||||||
17,446,629 | ||||||||
|
|
|||||||
Materials 3.40% |
||||||||
Axalta Coating Systems,
|
79,000 | 2,182,770 | ||||||
W.R. Grace & Co. (a)(b)(c) |
33,400 | 3,350,020 | ||||||
|
|
|||||||
5,532,790 | ||||||||
|
|
|||||||
Telecommunication Services 4.06% |
|
|||||||
AT&T, Inc. (a)(b) |
69,900 | 2,342,349 | ||||||
China Mobile, Ltd. |
193,500 | 2,316,827 | ||||||
China Unicom Hong
|
1,004,000 | 1,239,682 | ||||||
Nippon Telegraph & Telephone Corp. |
19,000 | 706,340 | ||||||
|
|
|||||||
6,605,198 | ||||||||
|
|
Annual Report | October 31, 2015 |
9 |
Clough Global Allocation Fund | Statement of Investments | |
October 31, 2015 |
10 |
www.cloughglobal.com |
Clough Global Allocation Fund | Statement of Investments | |
October 31, 2015 |
SCHEDULE OF SECURITIES SOLD | ||||||||
SHORT (c) | Shares | Value | ||||||
|
||||||||
COMMON STOCKS (40.13%) |
|
|||||||
Consumer Discretionary (1.92%) |
|
|||||||
Hotels (0.70%) |
||||||||
MGM Resorts International |
(19,100) | $(442,929) | ||||||
Wynn Resorts, Ltd. |
(9,800) | (685,510) | ||||||
|
|
|||||||
(1,128,439) | ||||||||
|
|
|||||||
Internet & Catalog Retail (1.22%) |
|
|||||||
Expedia, Inc. |
(14,600) | (1,989,980) | ||||||
|
|
|||||||
TOTAL CONSUMER DISCRETIONARY |
(3,118,419) | |||||||
|
|
|||||||
Consumer Staples (0.22%) |
|
|||||||
Carlsberg A/S - Class B |
(4,443) | (364,226) | ||||||
|
|
|||||||
Energy (6.35%) |
||||||||
Cheniere Energy, Inc. |
(8,000) | (396,160) | ||||||
Core Laboratories NV |
(8,200) | (953,906) | ||||||
Ensco PLC - Class A |
(104,900) | (1,744,487) | ||||||
Helmerich & Payne, Inc. |
(18,000) | (1,012,860) | ||||||
Nabors Industries, Ltd. |
(61,500) | (617,460) | ||||||
National Oilwell Varco, Inc. |
(12,200) | (459,208) | ||||||
Oil States International, Inc. |
(29,100) | (873,291) | ||||||
Patterson-UTI Energy, Inc. |
(44,300) | (659,627) | ||||||
Petroleo Brasileiro S.A. - Sponsored ADR |
(328,300) | (1,602,104) | ||||||
Rowan Cos., PLC - A Shares |
(35,800) | (704,544) | ||||||
Transocean, Ltd. |
(82,100) | (1,299,643) | ||||||
|
|
|||||||
(10,323,290) | ||||||||
|
|
|||||||
Financials (9.11%) |
||||||||
Commercial Banks (6.67%) |
|
|||||||
Banco Bilbao Vizcaya Argentaria S.A. - Sponsored ADR |
(155,400) | (1,339,548) | ||||||
Banco Santander S.A. - Sponsored ADR |
(199,600) | (1,105,784) | ||||||
BNP Paribas S.A. |
(31,517) | (1,915,184) | ||||||
Intesa Sanpaolo SpA |
(526,819) | (1,835,275) | ||||||
Itau Unibanco Holding S.A. - Class H, Sponsored Preferred ADR |
(264,200) | (1,809,770) | ||||||
Seven Bank, Ltd. |
(204,100) | (937,030) | ||||||
UniCredit SpA |
(176,444) | (1,140,877) | ||||||
United Overseas Bank, Ltd. |
(53,000) | (769,141) | ||||||
|
|
|||||||
(10,852,609) | ||||||||
|
|
|||||||
Consumer Finance (1.92%) |
|
|||||||
Ally Financial, Inc. |
(26,800) | (533,856) | ||||||
American Express Co. |
(35,400) | (2,593,404) | ||||||
|
|
|||||||
(3,127,260) | ||||||||
|
|
|||||||
Real Estate Management &
|
|
|||||||
China Resources Land, Ltd. |
(322,000) | (841,289) | ||||||
|
|
Annual Report | October 31, 2015 |
11 |
Clough Global Allocation Fund | Statement of Investments | |
October 31, 2015 |
SCHEDULE OF SECURITIES SOLD | ||||||||
SHORT (c) (continued) | Shares | Value | ||||||
|
||||||||
Financials (continued) |
||||||||
TOTAL FINANCIALS |
$(14,821,158) | |||||||
|
|
|||||||
Health Care (6.24%) |
||||||||
AbbVie, Inc. |
(11,200) | (666,960) | ||||||
Aetna, Inc. |
(3,500) | (401,730) | ||||||
AmerisourceBergen Corp. |
(6,400) | (617,664) | ||||||
ANI Pharmaceuticals, Inc. |
(33,500) | (1,401,640) | ||||||
Bruker Corp. |
(52,900) | (971,773) | ||||||
Eagle Pharmaceuticals, Inc. |
(13,600) | (866,456) | ||||||
Express Scripts Holding Co. |
(11,100) | (958,818) | ||||||
Horizon Pharma PLC |
(12,100) | (190,212) | ||||||
Lannett Co., Inc. |
(6,800) | (304,436) | ||||||
Mallinckrodt PLC |
(9,000) | (591,030) | ||||||
Merck & Co., Inc. |
(10,700) | (584,862) | ||||||
Pacira Pharmaceuticals, Inc. |
(4,700) | (234,765) | ||||||
Teligent, Inc. |
(57,400) | (417,298) | ||||||
UnitedHealth Group, Inc. |
(10,500) | (1,236,690) | ||||||
Varian Medical Systems, Inc. |
(8,900) | (698,917) | ||||||
|
|
|||||||
(10,143,251) | ||||||||
|
|
|||||||
Industrials (13.06%) |
||||||||
American Airlines Group, Inc. |
(27,500) | (1,271,050) | ||||||
Caterpillar, Inc. |
(38,200) | (2,788,218) | ||||||
Chicago Bridge & Iron Co. NV |
(63,200) | (2,835,784) | ||||||
Deutsche Lufthansa AG |
(70,645) | (1,043,307) | ||||||
easyJet PLC |
(42,535) | (1,147,510) | ||||||
Emerson Electric Co., Inc. |
(19,100) | (902,093) | ||||||
Flowserve Corp. |
(51,000) | (2,364,360) | ||||||
International Consolidated Airlines Group S.A. |
(109,554) | (983,776) | ||||||
Keppel Corp., Ltd. |
(138,500) | (699,964) | ||||||
Kone OYJ, B Shares |
(21,232) | (907,295) | ||||||
Kuehne + Nagel International AG |
(7,000) | (970,914) | ||||||
Metso OYJ |
(35,099) | (859,547) | ||||||
Pentair PLC |
(15,700) | (877,944) | ||||||
Rolls-Royce Holdings Entitlement - C Shares (d) |
(371) | (1) | ||||||
Rolls-Royce Holdings PLC |
(4) | (42) | ||||||
Rolls-Royce Holdings Preference - C Shares (d) |
(302) | (1) | ||||||
Sandvik AB |
(138,169) | (1,292,168) | ||||||
Triumph Group, Inc. |
(11,100) | (517,038) | ||||||
WW Grainger, Inc. |
(8,500) | (1,785,000) | ||||||
|
|
|||||||
(21,246,012) | ||||||||
|
|
|||||||
Information Technology (3.23%) |
|
|||||||
Corning, Inc. |
(48,200) | (896,520) | ||||||
International Business Machines Corp. |
(11,700) | (1,638,936) | ||||||
Nippon Electric Glass Co., Ltd. |
(183,000) | (905,370) |
(a) |
Pledged security; a portion or all of the security is pledged as collateral for securities sold short or borrowings. As of October 31, 2015, the aggregate market value of those securities was $188,496,799 representing 115.89% of net assets. (See Note 1 and Note 6) |
(b) |
Loaned security; a portion or all of the security is on loan as of October 31, 2015. |
(c) |
Non-income producing security. |
(d) |
Fair valued security; valued by management in accordance with procedures approved by the Funds Board of Trustees. As of October 31, 2015, these securities had an aggregate market value of $2,077,719 or 1.28% of total net assets. |
12 |
www.cloughglobal.com |
Clough Global Allocation Fund | Statement of Investments | |
October 31, 2015 |
(e) |
Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of October 31, 2015, these securities had an aggregate market value of $7,135,156 or 4.39% of net assets. |
(f) |
Floating or variable rate security - rate disclosed as of October 31, 2015. |
(g) |
This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
(h) |
Includes cash which is being held as collateral for total return swap contracts or futures contracts. |
FUTURES CONTRACTS
Description | Position | Contracts |
Expiration
Date |
Underlying Face
Amount at Value |
Unrealized
Appreciation |
|||||||||||
|
||||||||||||||||
Foreign Currency Contracts |
||||||||||||||||
Japanese Yen Currency Future |
Short | 52 | 12/15/2015 | $ | (5,387,200) | $ | 10,225 | |||||||||
|
|
|||||||||||||||
$ | (5,387,200) | $ | 10,225 | |||||||||||||
|
|
TOTAL RETURN SWAP CONTRACTS
Counter Party |
Reference Entity/Obligation |
Notional
Amount |
Floating Rate
Paid by the Fund |
Floating Rate Index |
Termination Date |
Net Unrealized Appreciation |
||||||||||||
|
||||||||||||||||||
Morgan Stanley |
Bharti Infratel, Ltd. | $ | 547,621 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | $ | 176,143 | ||||||||||
Morgan Stanley |
Housing Development Finance Corp. | 670,284 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | 35,780 | ||||||||||||
Morgan Stanley |
LG Electronics, Inc. | (697,005) | 50 bps - 1D FEDEF | 1 D FEDEF | 10/30/2017 | 3,605 | ||||||||||||
Morgan Stanley |
Zhengzhou Yutong Bus Co., Ltd. | 108,978 | 55 bps + 1D FEDEF | 1 D FEDEF | 01/05/2017 | 12,809 | ||||||||||||
|
||||||||||||||||||
$ | 629,878 | $ | 228,337 | |||||||||||||||
|
||||||||||||||||||
Reference | Notional | Floating Rate | Floating | Termination | Net Unrealized | |||||||||||||
Counter Party | Entity/Obligation | Amount | Paid by the Fund | Rate Index | Date | Depreciation | ||||||||||||
|
||||||||||||||||||
Credit Suisse |
Bharti Airtel, Ltd. | $ | 849,948 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | $ | (56,980) | ||||||||||
Morgan Stanley |
Hon Hai Precision Industry Co., Ltd. | (465,991) | 50 bps - 1D FEDEF | 1 D FEDEF | 05/04/2017 | (16,447) | ||||||||||||
Credit Suisse |
Larsen & Toubro, Ltd. | 628,131 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (131,578) | ||||||||||||
Credit Suisse |
Mahindra & Mahindra, Ltd. | 188,355 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (2,822) | ||||||||||||
Morgan Stanley |
Mahindra & Mahindra, Ltd. | 781,871 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | (102,630) | ||||||||||||
Credit Suisse |
Shriram Transport Finance Co., Ltd. | 890,059 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (126,356) | ||||||||||||
Credit Suisse |
Ultratech Cement, Ltd. | 1,024,119 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (32,921) | ||||||||||||
|
||||||||||||||||||
$ | 3,896,492 | $ | (469,734) | |||||||||||||||
|
||||||||||||||||||
$ | 4,526,370 | $ | (241,397) | |||||||||||||||
|
See Notes to the Financial Statements.
Annual Report | October 31, 2015 |
13 |
Clough Global Equity Fund | Statement of Investments | |
October 31, 2015 |
Shares | Value | |||||||
|
||||||||
COMMON STOCKS 118.31% |
|
|||||||
Consumer Discretionary 31.04% |
|
|||||||
Diversified Consumer Services 3.15% |
|
|||||||
Service Corp. International (a)(b) |
76,500 | $2,161,890 | ||||||
Starbucks Corp. (a)(b) |
99,800 | 6,244,486 | ||||||
|
|
|||||||
8,406,376 | ||||||||
|
|
|||||||
Household Durables 5.71% |
|
|||||||
DR Horton, Inc. (a)(b) |
246,221 | 7,248,746 | ||||||
Lennar Corp. -
|
159,400 | 7,981,158 | ||||||
|
|
|||||||
15,229,904 | ||||||||
|
|
|||||||
Internet & Catalog Retail 7.17% |
|
|||||||
JD.com, Inc. - ADR (a)(c) |
95,700 | 2,643,234 | ||||||
Liberty Ventures - Series A (a)(b)(c) |
220,703 | 9,616,030 | ||||||
NetFlix, Inc. (a)(c) |
8,600 | 932,068 | ||||||
Priceline Group, Inc. (a)(c) |
2,944 | 4,281,282 | ||||||
Rakuten, Inc. |
118,100 | 1,651,560 | ||||||
|
|
|||||||
19,124,174 | ||||||||
|
|
|||||||
Media 10.96% |
||||||||
AMC Entertainment Holdings, Inc. -
|
105,500 | 2,887,535 | ||||||
Comcast Corp. -
|
91,700 | 5,742,254 | ||||||
IMAX Corp. (a)(b)(c) |
154,495 | 5,931,063 | ||||||
Liberty Broadband Corp. -
|
22,092 | 1,205,340 | ||||||
Liberty Broadband Corp. -
|
83,866 | 4,509,475 | ||||||
Liberty Media Corp. -
|
88,368 | 3,601,880 | ||||||
Liberty Media Corp. -
|
90,936 | 3,560,144 | ||||||
Lions Gate Entertainment Corp. (a) |
45,400 | 1,769,238 | ||||||
|
|
|||||||
29,206,929 | ||||||||
|
|
|||||||
Specialty Retail 2.08% |
||||||||
Signet Jewelers, Ltd. (a)(b) |
36,746 | 5,546,441 | ||||||
|
|
|||||||
Textiles 1.97% |
||||||||
Carters, Inc. (a) |
51,900 | 4,716,672 | ||||||
Samsonite International S.A. |
177,000 | 524,108 | ||||||
|
|
|||||||
5,240,780 | ||||||||
|
|
|||||||
TOTAL CONSUMER DISCRETIONARY |
82,754,604 | |||||||
|
|
|||||||
Consumer Staples 0.34% |
|
|||||||
CVS Health Corp. (a) |
9,300 | 918,654 | ||||||
|
|
|||||||
Energy 4.99% |
||||||||
Anadarko Petroleum Corp. (a) |
32,900 | 2,200,352 | ||||||
Concho Resources,
|
20,800 | 2,410,928 |
Shares | Value | |||||||
|
||||||||
Energy (continued) |
|
|||||||
Devon Energy Corp. (a) |
43,900 | $1,840,727 | ||||||
EOG Resources, Inc. (a) |
18,800 | 1,613,980 | ||||||
Fairway Energy Partners
|
217,600 | 2,203,200 | ||||||
Pacific Coast Oil Trust (a)(e) |
95,800 | 190,642 | ||||||
Pioneer Natural Resources Co. (a) |
20,700 | 2,838,798 | ||||||
|
|
|||||||
13,298,627 | ||||||||
|
|
|||||||
Financials 31.12% |
||||||||
Capital Markets 4.69% |
||||||||
Atlas Mara, Ltd. (c)(e) |
306,320 | 1,837,920 | ||||||
Daiwa Securities Group, Inc. |
79,000 | 544,758 | ||||||
Goldman Sachs BDC (a) |
53,000 | 1,060,530 | ||||||
Goldman Sachs Group, Inc. (a) |
16,300 | 3,056,250 | ||||||
Monex Group, Inc. |
485,300 | 1,375,425 | ||||||
Morgan Stanley (a)(b) |
140,396 | 4,628,856 | ||||||
|
|
|||||||
12,503,739 | ||||||||
|
|
|||||||
Commercial Banks 1.50% |
|
|||||||
First Republic Bank (a) |
24,700 | 1,613,157 | ||||||
Mitsubishi UFJ Financial Group, Inc. |
144,300 | 945,418 | ||||||
Mizuho Financial Group, Inc. |
450,000 | 933,413 | ||||||
Sumitomo Mitsui Financial Group, Ltd. |
12,400 | 499,412 | ||||||
|
|
|||||||
3,991,400 | ||||||||
|
|
|||||||
Diversified Financials 10.10% |
|
|||||||
Bank of America Corp. (a) |
662,905 | 11,123,546 | ||||||
Citigroup, Inc. (a)(b) |
260,719 | 13,862,429 | ||||||
JPMorgan Chase &
|
30,300 | 1,946,775 | ||||||
|
|
|||||||
26,932,750 | ||||||||
|
|
|||||||
Insurance 3.32% |
||||||||
American International Group, Inc. (a)(b) |
121,600 | 7,668,096 | ||||||
Ping An Insurance Group Co. of China, Ltd. - Class H |
211,000 | 1,188,314 | ||||||
|
|
|||||||
8,856,410 | ||||||||
|
|
|||||||
Real Estate Investment Trusts 5.41% |
|
|||||||
Healthcare Trust of America, Inc. -
|
85,800 | 2,257,398 | ||||||
Ladder Capital Corp. (a) |
118,800 | 1,694,088 | ||||||
PennyMac Mortgage Investment Trust (a) |
177,788 | 2,599,261 | ||||||
Starwood Property Trust, Inc. (a)(b) |
257,400 | 5,171,166 | ||||||
Two Harbors Investment Corp. (a) |
318,757 | 2,696,684 | ||||||
|
|
|||||||
14,418,597 | ||||||||
|
|
|||||||
Thrifts & Mortgage Finance 6.10% |
|
|||||||
Essent Group, Ltd. (a)(b)(c) |
196,200 | 4,728,420 |
14 |
www.cloughglobal.com |
Clough Global Equity Fund | Statement of Investments | |
October 31, 2015 |
Shares | Value | |||||||
|
||||||||
Financials (continued) |
||||||||
MGIC Investment Corp. (a)(b)(c) |
602,565 | $5,664,111 | ||||||
NMI Holdings, Inc. - Class A (a)(c) |
177,200 | 1,332,544 | ||||||
Radian Group, Inc. (a)(b) |
312,900 | 4,527,663 | ||||||
|
|
|||||||
16,252,738 | ||||||||
|
|
|||||||
TOTAL FINANCIALS |
82,955,634 | |||||||
|
|
|||||||
Health Care 15.03% |
||||||||
3SBio, Inc. (c)(e) |
1,033,000 | 1,171,531 | ||||||
Acceleron Pharma, Inc. (a)(c) |
23,200 | 724,072 | ||||||
Akorn, Inc. (a)(b)(c) |
78,000 | 2,085,720 | ||||||
Albany Molecular Research,
|
75,600 | 1,363,824 | ||||||
Allergan PLC (a)(c) |
5,200 | 1,604,044 | ||||||
AstraZeneca PLC - Sponsored ADR (a) |
25,629 | 817,309 | ||||||
Bristol-Meyers Squibb Co. (a) |
16,916 | 1,115,610 | ||||||
Cardiome Pharma Corp. (a)(c) |
234,100 | 1,912,597 | ||||||
Cerner Corp. (a)(b)(c) |
19,300 | 1,279,397 | ||||||
Cigna Corp. (a) |
18,000 | 2,412,720 | ||||||
Community Health Systems,
|
10,500 | 294,420 | ||||||
Corindus Vascular Robotics,
|
233,200 | 746,240 | ||||||
Dynavax Technologies Corp. (a)(c) |
30,400 | 690,384 | ||||||
Forward Pharma A/S - ADR (a)(c) |
39,400 | 991,304 | ||||||
Gilead Sciences, Inc. |
2,900 | 313,577 | ||||||
GW Pharmaceuticals PLC - ADR (a)(b)(c) |
29,300 | 2,317,337 | ||||||
HCA Holdings, Inc. (a)(b)(c) |
17,215 | 1,184,220 | ||||||
Healthways, Inc. (a)(c) |
265,711 | 3,127,418 | ||||||
Hologic, Inc. (a)(b)(c) |
33,300 | 1,294,038 | ||||||
Intra-Cellular Therapies,
|
42,300 | 2,024,055 | ||||||
Intrexon Corp. (a)(b)(c) |
23,559 | 791,582 | ||||||
Jazz Pharmaceuticals PLC (a)(b)(c) |
7,934 | 1,089,180 | ||||||
Keryx Biopharmaceuticals,
|
222,800 | 998,144 | ||||||
MedEquities Realty Trust,
|
51,100 | 830,375 | ||||||
Perrigo Co. PLC (a) |
7,250 | 1,143,615 | ||||||
Sinopharm Group Co., Ltd. - Class H |
394,400 | 1,633,453 | ||||||
Team Health Holdings, Inc. (a)(c) |
10,200 | 608,634 | ||||||
Veracyte, Inc. (a)(b)(c) |
203,535 | 1,325,013 | ||||||
Vertex Pharmaceuticals,
|
28,700 | 3,580,038 | ||||||
Zeltiq Aesthetics, Inc. (c) |
17,700 | 597,198 | ||||||
|
|
|||||||
40,067,049 | ||||||||
|
|
|||||||
Industrials 12.88% |
||||||||
Air China, Ltd. - Class H |
568,000 | 548,902 | ||||||
Allison Transmission Holdings, Inc. (a)(e) |
135,277 | 3,882,450 |
Shares | Value | |||||||
|
||||||||
Industrials (continued) |
||||||||
Armstrong World Industries,
|
51,400 | $2,550,468 | ||||||
China Railway Construction Corp., Ltd. - Class H |
903,000 | 1,358,473 | ||||||
Kansas City Southern (a)(b) |
55,600 | 4,601,456 | ||||||
Keisei Electric Railway Co., Ltd. |
122,000 | 1,515,522 | ||||||
Mitsubishi Heavy Industries, Ltd. |
205,000 | 1,043,263 | ||||||
Roper Technologies, Inc. (a)(b) |
32,600 | 6,075,010 | ||||||
Seibu Holdings, Inc. |
92,600 | 1,888,527 | ||||||
TransDigm Group, Inc. (a)(c) |
25,700 | 5,650,145 | ||||||
Viasat, Inc. (a)(b)(c) |
69,242 | 4,567,202 | ||||||
Wesco Aircraft Holdings, Inc. (a)(c) |
8,600 | 107,156 | ||||||
Xinjiang Goldwind Science & |
||||||||
Technology Co., Ltd. - Class H |
288,800 | 544,765 | ||||||
|
|
|||||||
34,333,339 | ||||||||
|
|
|||||||
Information Technology 12.54% |
|
|||||||
Alibaba Group Holding, Ltd. - Sponsored ADR (a)(c) |
32,000 | 2,682,560 | ||||||
Alphabet, Inc. - Class A (a)(c) |
4,083 | 3,010,763 | ||||||
Alphabet, Inc. - Class C (a)(c) |
3,866 | 2,747,992 | ||||||
Baidu, Inc. - Sponsored ADR (c) |
3,700 | 693,639 | ||||||
Electronics For Imaging,
|
55,100 | 2,558,844 | ||||||
Facebook, Inc. - Class A (a)(b)(c) |
58,000 | 5,914,260 | ||||||
Fujifilm Holdings Corp. |
23,000 | 924,803 | ||||||
Lam Research Corp. (a)(b) |
55,300 | 4,235,427 | ||||||
Microsoft Corp. (a) |
28,800 | 1,516,032 | ||||||
Nintendo Co., Ltd. |
6,800 | 1,097,738 | ||||||
Pandora Media, Inc. (a)(b)(c) |
252,400 | 2,905,124 | ||||||
Salesforce.com, Inc. (a)(b)(c) |
66,200 | 5,144,402 | ||||||
|
|
|||||||
33,431,584 | ||||||||
|
|
|||||||
Materials 3.85% |
||||||||
Axalta Coating Systems,
|
153,800 | 4,249,494 | ||||||
W.R. Grace & Co. (a)(b)(c) |
60,000 | 6,018,000 | ||||||
|
|
|||||||
10,267,494 | ||||||||
|
|
|||||||
Telecommunication Services 4.15% |
|
|||||||
AT&T, Inc. (a)(b) |
116,700 | 3,910,617 | ||||||
China Mobile, Ltd. |
323,000 | 3,867,365 | ||||||
China Unicom Hong Kong, Ltd. |
1,692,000 | 2,089,185 | ||||||
Nippon Telegraph & Telephone Corp. |
31,800 | 1,182,190 | ||||||
|
|
|||||||
11,049,357 | ||||||||
|
|
Annual Report | October 31, 2015 |
15 |
Clough Global Equity Fund | Statement of Investments | |
October 31, 2015 |
16 |
www.cloughglobal.com |
Clough Global Equity Fund | Statement of Investments | |
October 31, 2015 |
SCHEDULE OF SECURITIES SOLD
SHORT (c) (continued) |
Shares | Value | ||||||
|
||||||||
Financials (continued) |
|
|||||||
Banco Santander S.A. - Sponsored ADR |
(331,600) | $(1,837,064) | ||||||
BNP Paribas S.A. |
(52,418) | (3,185,268) | ||||||
Intesa Sanpaolo SpA |
(876,174) | (3,052,320) | ||||||
Itau Unibanco Holding S.A. - Class H, Sponsored Preferred ADR |
(440,600) | (3,018,110) | ||||||
Seven Bank, Ltd. |
(340,000) | (1,560,951) | ||||||
UniCredit SpA |
(293,451) | (1,897,438) | ||||||
United Overseas Bank, Ltd. |
(87,000) | (1,262,553) | ||||||
|
|
|||||||
(18,041,112) | ||||||||
|
|
|||||||
Consumer Finance (1.95%) |
|
|||||||
Ally Financial, Inc. |
(44,900) | (894,408) | ||||||
American Express Co. |
(58,900) | (4,315,014) | ||||||
|
|
|||||||
(5,209,422) | ||||||||
|
|
|||||||
Real Estate Management &
|
|
|||||||
China Resources Land, Ltd. |
(542,000) | (1,416,084) | ||||||
|
|
|||||||
TOTAL FINANCIALS |
|
(24,666,618) | ||||||
|
|
|||||||
Health Care (6.37%) |
||||||||
AbbVie, Inc. |
(19,000) | (1,131,450) | ||||||
Aetna, Inc. |
(5,900) | (677,202) | ||||||
AmerisourceBergen Corp. |
(10,800) | (1,042,308) | ||||||
ANI Pharmaceuticals, Inc. |
(56,000) | (2,343,040) | ||||||
Bruker Corp. |
(87,900) | (1,614,723) | ||||||
Eagle Pharmaceuticals, Inc. |
(22,900) | (1,458,959) | ||||||
Express Scripts Holding Co. |
(18,100) | (1,563,478) | ||||||
Horizon Pharma PLC |
(20,500) | (322,260) | ||||||
Lannett Co., Inc. |
(11,500) | (514,855) | ||||||
Mallinckrodt PLC |
(15,200) | (998,184) | ||||||
Merck & Co., Inc. |
(17,800) | (972,948) | ||||||
Pacira Pharmaceuticals, Inc. |
(8,000) | (399,600) | ||||||
Teligent, Inc. |
(97,100) | (705,917) | ||||||
UnitedHealth Group, Inc. |
(17,500) | (2,061,150) | ||||||
Varian Medical Systems, Inc. |
(14,800) | (1,162,244) | ||||||
|
|
|||||||
(16,968,318) | ||||||||
|
|
|||||||
Industrials (13.30%) |
||||||||
American Airlines Group, Inc. |
(45,917) | (2,122,284) | ||||||
Caterpillar, Inc. |
(64,000) | (4,671,360) | ||||||
Chicago Bridge & Iron Co. |
(105,900) | (4,751,733) | ||||||
Deutsche Lufthansa AG |
(117,348) | (1,733,031) | ||||||
easyJet PLC |
(70,640) | (1,905,728) | ||||||
Emerson Electric Co., Inc. |
(32,100) | (1,516,083) | ||||||
Flowserve Corp. |
(84,600) | (3,922,056) | ||||||
International Consolidated Airlines Group S.A. |
(181,984) | (1,634,185) | ||||||
Keppel Corp., Ltd. |
(232,100) | (1,173,009) | ||||||
Kone OYJ, B Shares |
(35,708) | (1,525,889) | ||||||
Kuehne + Nagel International AG |
(11,700) | (1,622,813) |
Annual Report | October 31, 2015 |
17 |
Clough Global Equity Fund | Statement of Investments | |
October 31, 2015 |
SCHEDULE OF SECURITIES
SOLD SHORT (c) (continued) |
Shares | Value | ||||||
|
||||||||
PREFERRED STOCKS (0.45%) |
|
|||||||
Financials (0.45%) |
||||||||
Commercial Banks (0.45%) |
|
|||||||
Banco Bradesco S.A. - ADR |
(219,100) | (1,191,904) | ||||||
|
|
|||||||
TOTAL PREFERRED STOCKS (Proceeds $ 1,234,180) |
|
$(1,191,904) | ||||||
|
|
|||||||
TOTAL SECURITIES SOLD SHORT (Proceeds $ 160,248,810) |
|
$(167,759,912) | ||||||
|
|
(a) |
Pledged security; a portion or all of the security is pledged as collateral for securities sold short or borrowings. As of October 31, 2015, the aggregate market value of those securities was $315,265,121 representing 118.26% of net assets. (See Note 1 and Note 6) |
(b) |
Loaned security; a portion or all of the security is on loan as of October 31, 2015. |
(c) |
Non-income producing security. |
(d) |
Fair valued security; valued by management in accordance with procedures approved by the Funds Board of Trustees. As of October 31, 2015, these securities had an aggregate market value of $4,289,788 or 1.61% of total net assets. |
(e) |
Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of October 31, 2015, these securities had an aggregate market value of $10,140,583 or 3.80% of net assets. |
(f) |
Floating or variable rate security - rate disclosed as of October 31, 2015. |
(g) |
This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
(h) |
Includes cash which is being held as collateral for total return swap contracts or futures contracts. |
18 |
www.cloughglobal.com |
Clough Global Equity Fund | Statement of Investments | |
October 31, 2015 |
FUTURES CONTRACTS
Description | Position | Contracts |
Expiration Date |
Underlying Face
Amount at Value |
Unrealized Appreciation |
|||||||||||
|
||||||||||||||||
Foreign Currency Contracts |
||||||||||||||||
Japanese Yen Currency Future |
Short | 87 | 12/15/2015 | $ | (9,013,200) | $ | 17,108 | |||||||||
|
|
|||||||||||||||
$ | (9,013,200) | $ | 17,108 | |||||||||||||
|
|
TOTAL RETURN SWAP CONTRACTS
Counter Party |
Reference Entity/Obligation |
Notional
Amount |
Floating Rate
Paid by the Fund |
Floating Rate Index |
Termination Date |
Net Unrealized Appreciation |
||||||||||||
|
||||||||||||||||||
Morgan Stanley |
Bharti Infratel, Ltd. | $ | 875,103 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | $ | 276,521 | ||||||||||
Morgan Stanley |
Housing Development Finance Corp. | 1,102,791 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | 60,292 | ||||||||||||
Morgan Stanley |
LG Electronics, Inc. | (1,168,889) | 50 bps - 1D FEDEF | 1 D FEDEF | 10/30/2017 | 6,046 | ||||||||||||
Morgan Stanley |
Zhengzhou Yutong Bus Co., Ltd. | 182,252 | 55 bps + 1D FEDEF | 1 D FEDEF | 01/05/2017 | 21,421 | ||||||||||||
|
||||||||||||||||||
$ | 991,257 | $ | 364,280 | |||||||||||||||
|
||||||||||||||||||
Counter Party |
Reference Entity/Obligation |
Notional
Amount |
Floating Rate
Paid by the Fund |
Floating
Rate Index |
Termination Date |
Net Unrealized Depreciation |
||||||||||||
|
||||||||||||||||||
Credit Suisse |
Adani Ports | $ | 1,596,390 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | $ | (179,273) | ||||||||||
Credit Suisse |
Bharti Airtel, Ltd. | 1,408,630 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (94,435) | ||||||||||||
Morgan Stanley |
Hon Hai Precision Industry Co., Ltd. | (773,927) | 50 bps - 1D FEDEF | 1 D FEDEF | 05/04/2017 | (27,290) | ||||||||||||
Credit Suisse |
Larsen & Toubro, Ltd. | 1,024,076 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (214,478) | ||||||||||||
Credit Suisse |
Mahindra & Mahindra, Ltd. | 314,221 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (4,850) | ||||||||||||
Morgan Stanley |
Mahindra & Mahindra, Ltd. | 1,291,778 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | (169,745) | ||||||||||||
Credit Suisse |
Shriram Transport Finance Co., Ltd. | 1,477,744 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (208,895) | ||||||||||||
Credit Suisse |
Ultratech Cement, Ltd. | 1,703,882 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (54,991) | ||||||||||||
|
||||||||||||||||||
$ | 8,042,794 | $ | (953,957) | |||||||||||||||
|
||||||||||||||||||
$ | 9,034,051 | $ | (589,677) | |||||||||||||||
|
See Notes to the Financial Statements.
Annual Report | October 31, 2015 |
19 |
Clough Global Opportunities Fund | Statement of Investments | |
October 31, 2015 |
Shares | Value | |||||||
|
||||||||
COMMON STOCKS 109.91% |
|
|||||||
Consumer Discretionary 28.55% |
|
|||||||
Diversified Consumer Services 3.17% |
|
|||||||
Service Corp. International (a) |
193,700 | $5,473,962 | ||||||
Starbucks Corp. (a)(b) |
249,700 | 15,623,729 | ||||||
|
|
|||||||
21,097,691 | ||||||||
|
|
|||||||
Household Durables 5.70% |
|
|||||||
DR Horton, Inc. (a)(b) |
613,462 | 18,060,321 | ||||||
Lennar Corp. - Class A (a)(b) |
397,700 | 19,912,839 | ||||||
|
|
|||||||
37,973,160 | ||||||||
|
|
|||||||
Internet & Catalog Retail 6.68% |
|
|||||||
JD.com, Inc. - ADR (a)(c) |
237,900 | 6,570,798 | ||||||
Liberty Ventures -
|
481,471 | 20,977,692 | ||||||
NetFlix, Inc. (a)(c) |
21,200 | 2,297,656 | ||||||
Priceline Group, Inc. (a)(c) |
7,289 | 10,599,955 | ||||||
Rakuten, Inc. |
293,500 | 4,104,427 | ||||||
|
|
|||||||
44,550,528 | ||||||||
|
|
|||||||
Media 10.08% |
|
|||||||
AMC Entertainment Holdings, Inc. - Class A (a) |
266,600 | 7,296,842 | ||||||
Comcast Corp. - Class A (a)(b) |
229,000 | 14,339,980 | ||||||
IMAX Corp. (a)(c) |
286,900 | 11,014,091 | ||||||
Liberty Broadband Corp. -
|
52,014 | 2,837,884 | ||||||
Liberty Broadband Corp. -
|
203,467 | 10,940,421 | ||||||
Liberty Media Corp. - Class A (a)(b)(c) |
208,056 | 8,480,362 | ||||||
Liberty Media Corp. - Class C (a)(b)(c) |
201,912 | 7,904,855 | ||||||
Lions Gate Entertainment Corp. (a)(b) |
113,100 | 4,407,507 | ||||||
|
|
|||||||
67,221,942 | ||||||||
|
|
|||||||
Specialty Retail 2.07% |
|
|||||||
Signet Jewelers, Ltd. (a)(b) |
91,446 | 13,802,859 | ||||||
|
|
|||||||
Textiles 0.85% |
|
|||||||
Carters, Inc. (a) |
48,100 | 4,371,328 | ||||||
Samsonite International S.A. |
440,400 | 1,304,052 | ||||||
|
|
|||||||
5,675,380 | ||||||||
|
|
|||||||
TOTAL CONSUMER DISCRETIONARY |
|
190,321,560 | ||||||
|
|
|||||||
Consumer Staples 0.35% |
|
|||||||
CVS Health Corp. (a) |
23,300 | 2,301,574 | ||||||
|
|
Shares | Value | |||||||
|
||||||||
Energy 4.88% |
|
|||||||
Anadarko Petroleum Corp. (a)(b) |
82,000 | $5,484,160 | ||||||
Concho Resources,
|
51,600 | 5,980,956 | ||||||
Devon Energy Corp. (a)(b) |
109,200 | 4,578,756 | ||||||
EOG Resources, Inc. (a) |
46,800 | 4,017,780 | ||||||
Fairway Energy Partners LLC (c)(d)(e) |
536,000 | 5,427,000 | ||||||
Pioneer Natural Resources Co. |
51,230 | 7,025,682 | ||||||
|
|
|||||||
32,514,334 | ||||||||
|
|
|||||||
Financials 28.29% |
||||||||
Business Development Corporations 0.54% |
|
|||||||
Golub Capital BDC,
|
220,900 | 3,616,133 | ||||||
|
|
|||||||
Capital Markets 3.78% |
|
|||||||
Atlas Mara, Ltd. (c)(e) |
764,522 | 4,587,132 | ||||||
Daiwa Securities Group, Inc. |
195,000 | 1,344,655 | ||||||
Goldman Sachs Group, Inc. (a) |
40,700 | 7,631,250 | ||||||
Morgan Stanley (a)(b) |
353,213 | 11,645,433 | ||||||
|
|
|||||||
25,208,470 | ||||||||
|
|
|||||||
Commercial Banks 1.48% |
|
|||||||
First Republic Bank (a) |
61,300 | 4,003,503 | ||||||
Mitsubishi UFJ Financial Group, Inc. |
356,100 | 2,333,079 | ||||||
Mizuho Financial Group, Inc. |
1,110,600 | 2,303,664 | ||||||
Sumitomo Mitsui Financial |
||||||||
Group, Ltd. |
31,100 | 1,252,557 | ||||||
|
|
|||||||
9,892,803 | ||||||||
|
|
|||||||
Diversified Financials 10.10% |
|
|||||||
Bank of America
|
1,641,710 | 27,547,894 | ||||||
Citigroup, Inc. (a)(b) |
657,125 | 34,939,336 | ||||||
JPMorgan Chase &
|
75,200 | 4,831,600 | ||||||
|
|
|||||||
67,318,830 | ||||||||
|
|
|||||||
Insurance 3.40% |
||||||||
American International Group, Inc. (a)(b) |
313,000 | 19,737,780 | ||||||
Ping An Insurance Group Co. of China, Ltd. - Class H |
521,000 | 2,934,179 | ||||||
|
|
|||||||
22,671,959 | ||||||||
|
|
|||||||
Real Estate Investment Trusts 5.19% |
|
|||||||
Healthcare Trust of America, Inc. -
|
212,600 | 5,593,506 | ||||||
Ladder Capital Corp. (a) |
208,196 | 2,968,875 | ||||||
PennyMac Mortgage Investment Trust (a) |
442,791 | 6,473,605 | ||||||
Starwood Property Trust, Inc. (a) |
638,000 | 12,817,420 |
20 |
www.cloughglobal.com |
Clough Global Opportunities Fund | Statement of Investments | |
October 31, 2015 |
Shares | Value | |||||||
|
||||||||
Financials (continued) |
|
|||||||
Two Harbors Investment Corp. (a) |
792,822 | $6,707,274 | ||||||
|
|
|||||||
34,560,680 | ||||||||
|
|
|||||||
Thrifts & Mortgage Finance 3.80% |
|
|||||||
MGIC Investment
|
1,503,731 | 14,135,071 | ||||||
Radian Group, Inc. (a)(b) |
772,400 | 11,176,628 | ||||||
|
|
|||||||
25,311,699 | ||||||||
|
|
|||||||
TOTAL FINANCIALS |
|
188,580,574 | ||||||
|
|
|||||||
Health Care 14.02% |
||||||||
3SBio, Inc. (c)(e) |
14,500 | 16,445 | ||||||
Acceleron Pharma,
|
57,496 | 1,794,450 | ||||||
Akorn, Inc. (a)(b)(c) |
169,600 | 4,535,104 | ||||||
Albany Molecular Research,
|
189,700 | 3,422,188 | ||||||
Allergan PLC (c) |
12,700 | 3,917,569 | ||||||
AstraZeneca PLC - Sponsored ADR (a) |
63,824 | 2,035,347 | ||||||
Bristol-Meyers Squibb Co. (a) |
41,700 | 2,750,115 | ||||||
Cardiome Pharma
|
576,400 | 4,709,188 | ||||||
Cerner Corp. (a)(b)(c) |
48,000 | 3,181,920 | ||||||
Cigna Corp. (a) |
44,600 | 5,978,184 | ||||||
Community Health Systems,
|
25,500 | 715,020 | ||||||
Corindus Vascular Robotics,
|
577,300 | 1,847,360 | ||||||
Dynavax Technologies Corp. (a)(c) |
75,799 | 1,721,395 | ||||||
Forward Pharma A/S - ADR (a)(b)(c) |
98,100 | 2,468,196 | ||||||
Gilead Sciences, Inc. |
6,900 | 746,097 | ||||||
GW Pharmaceuticals PLC - ADR (a)(b)(c) |
72,400 | 5,726,116 | ||||||
HCA Holdings,
|
42,847 | 2,947,445 | ||||||
Healthways,
|
669,633 | 7,881,581 | ||||||
Hologic, Inc. (a)(b)(c) |
83,100 | 3,229,266 | ||||||
Intra-Cellular Therapies, Inc. (a)(c) |
105,300 | 5,038,605 | ||||||
Intrexon Corp. (a)(b)(c) |
59,372 | 1,994,899 | ||||||
Jazz Pharmaceuticals PLC (a)(b)(c) |
19,823 | 2,721,302 | ||||||
Keryx Biopharmaceuticals,
|
549,800 | 2,463,104 | ||||||
Perrigo Co. PLC (a) |
17,914 | 2,825,754 | ||||||
Sinopharm Group Co., Ltd. -
|
972,800 | 4,028,963 | ||||||
Team Health Holdings,
|
25,100 | 1,497,717 | ||||||
Veracyte, Inc. (a)(b)(c) |
449,326 | 2,925,112 | ||||||
Vertex Pharmaceuticals,
|
71,200 | 8,881,488 | ||||||
Zeltiq Aesthetics,
|
43,800 | 1,477,812 | ||||||
|
|
|||||||
93,477,742 | ||||||||
|
|
|||||||
Industrials 12.66% |
||||||||
Air China, Ltd. - Class H |
1,402,000 | 1,354,860 |
Shares | Value | |||||||
|
||||||||
Industrials (continued) |
|
|||||||
Allison Transmission Holdings, Inc. (a)(e) |
337,510 | $9,686,537 | ||||||
Armstrong World Industries,
|
128,900 | 6,396,018 | ||||||
China Railway Construction Corp., Ltd. - Class H |
2,236,000 | 3,363,838 | ||||||
Kansas City Southern (a)(b) |
137,400 | 11,371,224 | ||||||
Keisei Electric Railway Co., Ltd. |
302,000 | 3,751,537 | ||||||
Mitsubishi Heavy Industries, Ltd. |
527,000 | 2,681,948 | ||||||
Roper Technologies, Inc. (a)(b) |
80,500 | 15,001,175 | ||||||
Seibu Holdings, Inc. |
229,700 | 4,684,608 | ||||||
TransDigm Group, Inc. (a)(c) |
63,900 | 14,048,415 | ||||||
Viasat, Inc. (a)(b)(c) |
158,435 | 10,450,373 | ||||||
Wesco Aircraft Holdings,
|
21,700 | 270,382 | ||||||
Xinjiang Goldwind Science & Technology Co., Ltd. -
|
713,000 | 1,344,936 | ||||||
|
|
|||||||
84,405,851 | ||||||||
|
|
|||||||
Information Technology 10.86% |
|
|||||||
Alibaba Group Holding, Ltd. - Sponsored ADR (a)(b)(c) |
79,100 | 6,630,953 | ||||||
Alphabet, Inc. - Class A (a)(b)(c) |
10,677 | 7,873,113 | ||||||
Alphabet, Inc. - Class C (a)(b)(c) |
9,563 | 6,797,476 | ||||||
Baidu, Inc. - Sponsored
|
9,000 | 1,687,230 | ||||||
Facebook, Inc. -
|
142,270 | 14,507,272 | ||||||
Fujifilm Holdings Corp. |
57,200 | 2,299,945 | ||||||
Lam Research Corp. (a)(b) |
125,700 | 9,627,363 | ||||||
Microsoft Corp. (a) |
69,800 | 3,674,272 | ||||||
Nintendo Co., Ltd. |
17,400 | 2,808,917 | ||||||
Pandora Media, Inc. (a)(b)(c) |
310,100 | 3,569,251 | ||||||
Salesforce.com, Inc. (a)(b)(c) |
166,000 | 12,899,860 | ||||||
|
|
|||||||
72,375,652 | ||||||||
|
|
|||||||
Materials 3.85% |
||||||||
Axalta Coating Systems,
|
384,800 | 10,632,024 | ||||||
W.R. Grace & Co. (a)(b)(c) |
149,700 | 15,014,910 | ||||||
|
|
|||||||
25,646,934 | ||||||||
|
|
|||||||
Telecommunication Services 4.10% |
|
|||||||
AT&T, Inc. (a)(b) |
289,100 | 9,687,741 | ||||||
China Mobile, Ltd. |
798,000 | 9,554,667 | ||||||
China Unicom Hong Kong, Ltd. |
4,152,000 | 5,126,653 |
Annual Report | October 31, 2015 |
21 |
Clough Global Opportunities Fund | Statement of Investments | |
October 31, 2015 |
22 |
www.cloughglobal.com |
Clough Global Opportunities Fund | Statement of Investments | |
October 31, 2015 |
SCHEDULE OF SECURITIES SOLD SHORT (c) (continued) |
Shares | Value | ||||||
|
||||||||
Consumer Discretionary (continued) |
|
|||||||
Wynn Resorts, Ltd. |
(40,800 | ) | $(2,853,960) | |||||
|
|
|||||||
(4,693,437) | ||||||||
|
|
|||||||
Internet & Catalog Retail (1.26%) |
|
|||||||
Expedia, Inc. |
(61,700 | ) | (8,409,710) | |||||
|
|
|||||||
TOTAL CONSUMER DISCRETIONARY |
|
(13,103,147) | ||||||
|
|
|||||||
Consumer Staples (0.23%) |
|
|||||||
Carlsberg A/S - Class B |
(18,345 | ) | (1,503,877) | |||||
|
|
|||||||
Energy (6.45%) |
||||||||
Cheniere Energy, Inc. |
(33,100 | ) | (1,639,112) | |||||
Core Laboratories NV |
(34,300 | ) | (3,990,119) | |||||
Ensco PLC - Class A |
(438,100 | ) | (7,285,603) | |||||
Helmerich & Payne, Inc. |
(75,500 | ) | (4,248,385) | |||||
Nabors Industries, Ltd. |
(257,800 | ) | (2,588,312) | |||||
National Oilwell Varco, Inc. |
(50,300 | ) | (1,893,292) | |||||
Oil States International, Inc. |
(121,400 | ) | (3,643,214) | |||||
Patterson-UTI Energy, Inc. |
(185,600 | ) | (2,763,584) | |||||
Petroleo Brasileiro S.A. - Sponsored ADR |
(1,357,100 | ) | (6,622,648) | |||||
Rowan Cos., PLC - A Shares |
(148,202 | ) | (2,916,615) | |||||
Transocean, Ltd. |
(341,300 | ) | (5,402,779) | |||||
|
|
|||||||
(42,993,663) | ||||||||
|
|
|||||||
Financials (9.20%) |
|
|||||||
Commercial Banks (6.73%) |
|
|||||||
Banco Bilbao Vizcaya Argentaria S.A. - Sponsored ADR |
(642,295 | ) | (5,536,583) | |||||
Banco Santander S.A. - Sponsored ADR |
(824,900 | ) | (4,569,946) | |||||
BNP Paribas S.A. |
(130,317 | ) | (7,918,931) | |||||
Intesa Sanpaolo SpA |
(2,178,293 | ) | (7,588,502) | |||||
Itau Unibanco Holding S.A. - Class H, Sponsored Preferred ADR |
(1,092,060 | ) | (7,480,611) | |||||
Seven Bank, Ltd. |
(849,600 | ) | (3,900,542) | |||||
UniCredit SpA |
(729,562 | ) | (4,717,307) | |||||
United Overseas Bank, Ltd. |
(217,000 | ) | (3,149,125) | |||||
|
|
|||||||
(44,861,547) | ||||||||
|
|
|||||||
Consumer Finance (1.95%) |
|
|||||||
Ally Financial, Inc. |
(111,000 | ) | (2,211,120) | |||||
American Express Co. |
(147,134 | ) | (10,779,037) | |||||
|
|
|||||||
(12,990,157) | ||||||||
|
|
|||||||
Real Estate Management & Development (0.52%) |
|
|||||||
China Resources Land, Ltd. |
(1,332,000 | ) | (3,480,118) | |||||
|
|
|||||||
TOTAL FINANCIALS |
(61,331,822) | |||||||
|
|
Annual Report | October 31, 2015 |
23 |
Clough Global Opportunities Fund | Statement of Investments | |
October 31, 2015 |
SCHEDULE OF SECURITIES SOLD SHORT (c) (continued) |
Shares | Value | ||||||
|
||||||||
Health Care (6.29%) |
||||||||
AbbVie, Inc. |
(46,000 | ) | $(2,739,300) | |||||
Aetna, Inc. |
(14,814 | ) | (1,700,351) | |||||
AmerisourceBergen Corp. |
(26,800 | ) | (2,586,468) | |||||
ANI Pharmaceuticals, Inc. |
(138,600 | ) | (5,799,024) | |||||
Bruker Corp. |
(218,900 | ) | (4,021,193) | |||||
Eagle Pharmaceuticals, Inc. |
(56,100 | ) | (3,574,131) | |||||
Express Scripts Holding Co. |
(45,200 | ) | (3,904,376) | |||||
Horizon Pharma PLC |
(50,100 | ) | (787,572) | |||||
Lannett Co., Inc. |
(28,100 | ) | (1,258,037) | |||||
Mallinckrodt PLC |
(37,100 | ) | (2,436,357) | |||||
Merck & Co., Inc. |
(44,500 | ) | (2,432,370) | |||||
Pacira Pharmaceuticals, Inc. |
(19,400 | ) | (969,030) | |||||
Teligent, Inc. |
(235,200 | ) | (1,709,904) | |||||
UnitedHealth Group, Inc. |
(43,500 | ) | (5,123,430) | |||||
Varian Medical Systems, Inc. |
(36,900 | ) | (2,897,757) | |||||
|
|
|||||||
(41,939,300) | ||||||||
|
|
|||||||
Industrials (13.20%) |
||||||||
American Airlines Group, Inc. |
(114,580 | ) | (5,295,888) | |||||
Caterpillar, Inc. |
(158,000 | ) | (11,532,420) | |||||
Chicago Bridge & Iron Co. NV |
(263,300 | ) | (11,814,271) | |||||
Deutsche Lufthansa AG |
(292,237 | ) | (4,315,845) | |||||
easyJet PLC |
(176,523 | ) | (4,762,243) | |||||
Emerson Electric Co., Inc. |
(78,800 | ) | (3,721,724) | |||||
Flowserve Corp. |
(210,900 | ) | (9,777,324) | |||||
International Consolidated |
||||||||
Airlines Group S.A. |
(453,177 | ) | (4,069,452) | |||||
Keppel Corp., Ltd. |
(573,000 | ) | (2,895,881) | |||||
Kone OYJ, B Shares |
(86,816 | ) | (3,709,857) | |||||
Kuehne + Nagel International AG |
(29,100 | ) | (4,036,228) | |||||
Metso OYJ |
(144,970 | ) | (3,550,201) | |||||
Pentair PLC |
(64,900 | ) | (3,629,208) | |||||
Rolls-Royce Holdings Entitlement - C Shares (d) |
(1,761 | ) | (3) | |||||
Rolls-Royce Holdings PLC |
(19 | ) | (201) | |||||
Rolls-Royce Holdings Preference - C Shares (d) |
(1,258 | ) | (2) | |||||
Sandvik AB |
(570,868 | ) | (5,338,806) | |||||
Triumph Group, Inc. |
(45,800 | ) | (2,133,364) | |||||
WW Grainger, Inc. |
(35,200 | ) | (7,392,000) | |||||
|
|
|||||||
(87,974,918) | ||||||||
|
|
|||||||
Information Technology (3.26%) |
|
|||||||
Corning, Inc. |
(199,400 | ) | (3,708,840) | |||||
International Business Machines Corp. |
(48,340 | ) | (6,771,467) | |||||
Nippon Electric Glass Co., Ltd. |
(758,000 | ) | (3,750,112) |
(a) |
Pledged security; a portion or all of the security is pledged as collateral for securities sold short or borrowings. As of October 31, 2015, the aggregate market value of those securities was $782,851,931 representing 117.44% of net assets. (See Note 1 and Note 6) |
(b) |
Loaned security; a portion or all of the security is on loan as of October 31, 2015. |
(c) |
Non-income producing security. |
(d) |
Fair valued security; valued by management in accordance with procedures approved by the Funds Board of Trustees. As of October 31, 2015, these securities had an aggregate market value of $8,543,804 or 1.28% of total net assets. |
24 |
www.cloughglobal.com |
Clough Global Opportunities Fund | Statement of Investments | |
October 31, 2015 |
(e) |
Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of October 31, 2015, these securities had an aggregate market value of $29,634,155 or 4.45% of net assets. |
(f) |
Floating or variable rate security - rate disclosed as of October 31, 2015. |
(g) |
This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
(h) |
Includes cash which is being held as collateral for total return swap contracts or futures contracts. |
FUTURES CONTRACTS
Description | Position | Contracts |
Expiration
Date |
Underlying Face
Amount at Value |
Unrealized
Appreciation |
|||||||||
Foreign Currency Contracts |
||||||||||||||
Japanese Yen Currency Future |
Short | 221 | 12/15/2015 | $ | (22,895,600 | ) | $ | 43,457 | ||||||
|
|
|||||||||||||
$ | (22,895,600 | ) | $ | 43,457 | ||||||||||
|
|
TOTAL RETURN SWAP CONTRACTS
Counter Party |
Reference Entity/Obligation |
Notional
Amount |
Floating Rate Paid by the Fund |
Floating
Rate Index |
Termination
Date |
Net Unrealized Appreciation |
||||||||||||||
|
||||||||||||||||||||
Morgan Stanley |
Bharti Infratel, Ltd. | $ | 2,303,178 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | $ | 746,762 | ||||||||||||
Morgan Stanley |
Housing Development Finance Corp. | 2,767,835 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | 153,147 | ||||||||||||||
Morgan Stanley |
LG Electronics, Inc. | (2,878,931) | 50 bps - 1D FEDEF | 1 D FEDEF | 10/30/2017 | 14,890 | ||||||||||||||
Morgan Stanley |
Zhengzhou Yutong Bus Co., Ltd. | 450,817 | 55 bps + 1D FEDEF | 1 D FEDEF | 01/05/2017 | 52,987 | ||||||||||||||
|
||||||||||||||||||||
$ | 2,642,899 | $ | 967,786 | |||||||||||||||||
|
||||||||||||||||||||
Counter Party |
Reference Entity/Obligation |
Notional
Amount |
Floating Rate Paid by the Fund |
Floating
Rate Index |
Termination
Date |
Net Unrealized
Depreciation |
||||||||||||||
|
||||||||||||||||||||
Credit Suisse |
Bharti Airtel, Ltd. | $ | 3,515,155 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | $ | (235,655 | ) | |||||||||||
Morgan Stanley |
Hon Hai Precision Industry Co., Ltd. | (1,944,975) | 50 bps - 1D FEDEF | 1 D FEDEF | 05/04/2017 | (68,138 | ) | |||||||||||||
Credit Suisse |
Larsen & Toubro, Ltd. | 2,538,839 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (531,038 | ) | |||||||||||||
Credit Suisse |
Mahindra & Mahindra, Ltd. | 779,669 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (11,710 | ) | |||||||||||||
Morgan Stanley |
Mahindra & Mahindra, Ltd. | 3,220,781 | 30 bps + 1D FEDEF | 1 D FEDEF | 12/27/2016 | (423,268 | ) | |||||||||||||
Credit Suisse |
Shriram Transport Finance Co., Ltd. | 3,670,385 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (520,510 | ) | |||||||||||||
Credit Suisse |
Ultratech Cement, Ltd. | 4,196,269 | 75 bps + 1M LIBOR | 1 M LIBOR | 11/30/2017 | (136,252 | ) | |||||||||||||
|
||||||||||||||||||||
$ | 15,976,123 | $ | (1,926,571 | ) | ||||||||||||||||
|
||||||||||||||||||||
$ | 18,619,022 | $ | (958,785 | ) | ||||||||||||||||
|
See Notes to the Financial Statements.
Annual Report | October 31, 2015 |
25 |
Clough Global Funds | Statement of Investments | |
October 31, 2015 |
Abbreviations:
1D FEDEF - Federal Funds Effective Rate (Daily)
AB - Aktiebolag is the Swedish equivalent of the term corporation
ADR - American Depositary Receipt
AG - Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders
A/S - Aktieselskab, Joint Stock Company in Denmark
bps - Basis Points
ETF - Exchange Traded Fund
1M LIBOR - London Interbank Offered Rate (Monthly)
LLC - Limited Liability Corporation
Ltd. - Limited
MSCI - Morgan Stanley Capital International
NV - Naamloze Vennootschap (Dutch: Limited Liability Company)
OYJ - Osakeyhtio is the Finnish equivalent of a public limited company.
PLC - Public Limited Company
S.A. - Generally designates corporations in various countries, mostly those employing the civil law.
SpA - Societa` Per Azioni is an Italian shared company
S&P - Standard & Poors
SPDR - Standard & Poors Depositary Receipt
For Fund compliance purposes, each Funds industry classifications refer to any one of the industry sub-classifications used by one or more widely recognized market indexes, and/or as defined by each Funds management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets. These industry classifications are unaudited.
See Notes to the Financial Statements.
26 |
www.cloughglobal.com |
Clough Global Funds | Statements of Assets and Liabilities | |
October 31, 2015 |